District of Columbia Seller's Affidavit of Nonforeign Status

• Category: Federal - IRS
• State: Multi-State
• Control #: US-0604BG
• Format: Word; Rich Text

Description

Section 1445 of the Internal Revenue Code provides that a transferee of U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required is upon the disposition of a U.S. real property, this affidavit may be executed. The District of Columbia Seller's Affidavit of Nonforeign Status is a legal document that confirms the seller's non-foreign status for a real estate transaction in the District of Columbia. This affidavit is required to determine if the seller is subject to the Foreign Investment in Real Property Tax Act (FIR PTA) withholding requirements. FIR PTA is a tax law that imposes withholding obligations on buyers, usually 15% of the sales price, when purchasing U.S. real property interests from foreign sellers. The District of Columbia Seller's Affidavit of Nonforeign Status serves as proof that the seller is not a foreign person, as defined by the Internal Revenue Service (IRS), for FIR PTA purposes. The affidavit requires the seller to provide their full legal name, contact information, and taxpayer identification number (TIN). They also need to certify their non-foreign status by confirming their U.S. citizenship or residency status. It is important to note that there may be variations or additional forms of the Seller's Affidavit of Nonforeign Status specific to certain situations or requirements. Some possible types of District of Columbia Seller's Affidavit of Nonforeign Status include: 1. Individual Seller's Affidavit: This affidavit is used when a natural person is selling the property as an individual, without any involvement of an entity or corporation. It requires the seller to provide their personal information as outlined above. 2. Corporate Seller's Affidavit: In cases where the property is being sold by a corporation or other entity, this affidavit is used. It requires the entity's legal name, address, taxpayer identification number, and in some cases, the names of the authorized representatives signing on behalf of the corporation. 3. Trustee Seller's Affidavit: If the property is held by a trust, the trustee must complete this affidavit. They need to provide their personal information as well as details regarding the trust, including the trust's legal name and TIN. The District of Columbia Seller's Affidavit of Nonforeign Status plays a crucial role in ensuring compliance with IRS regulations and avoiding potential penalties associated with FIR PTA. It is essential for both buyers and sellers to accurately complete and submit this affidavit as part of the real estate transaction process.

The District of Columbia Seller's Affidavit of Nonforeign Status is a legal document that confirms the seller's non-foreign status for a real estate transaction in the District of Columbia. This affidavit is required to determine if the seller is subject to the Foreign Investment in Real Property Tax Act (FIR PTA) withholding requirements. FIR PTA is a tax law that imposes withholding obligations on buyers, usually 15% of the sales price, when purchasing U.S. real property interests from foreign sellers. The District of Columbia Seller's Affidavit of Nonforeign Status serves as proof that the seller is not a foreign person, as defined by the Internal Revenue Service (IRS), for FIR PTA purposes. The affidavit requires the seller to provide their full legal name, contact information, and taxpayer identification number (TIN). They also need to certify their non-foreign status by confirming their U.S. citizenship or residency status. It is important to note that there may be variations or additional forms of the Seller's Affidavit of Nonforeign Status specific to certain situations or requirements. Some possible types of District of Columbia Seller's Affidavit of Nonforeign Status include: 1. Individual Seller's Affidavit: This affidavit is used when a natural person is selling the property as an individual, without any involvement of an entity or corporation. It requires the seller to provide their personal information as outlined above. 2. Corporate Seller's Affidavit: In cases where the property is being sold by a corporation or other entity, this affidavit is used. It requires the entity's legal name, address, taxpayer identification number, and in some cases, the names of the authorized representatives signing on behalf of the corporation. 3. Trustee Seller's Affidavit: If the property is held by a trust, the trustee must complete this affidavit. They need to provide their personal information as well as details regarding the trust, including the trust's legal name and TIN. The District of Columbia Seller's Affidavit of Nonforeign Status plays a crucial role in ensuring compliance with IRS regulations and avoiding potential penalties associated with FIR PTA. It is essential for both buyers and sellers to accurately complete and submit this affidavit as part of the real estate transaction process.